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Japan's manufacturing industry has been rocked by a number of scandals through the past year. It has ranged from inflating fuel economy figures, fabrication of product data, and recently, improper inspections of Japanese market vehicles by Nissan and Subaru. Now a new scandal has come to light. Subaru has revealed that it is investigating whether or not mileage readings on their vehicles were falsified during final inspection. According to Reuters, the mileage readings are used as an indicator for fuel efficiency. The company is checking to see if this data affected its official mileage readings and whether exported models are involved. "At the moment we are trying to confirm whether data was indeed fabricated, and if so, how this happened and which models are affected," said Subaru spokeswoman Miyuki Yasuda. This revelation stems from a current investigation being done by external investigators into final inspections being done by uncertified workers for JDM vehicles. Some inspectors told the investigators "that mileage data had been altered on some sample vehicle models tested during final checks." “Coming on the heels of the certified inspection issue, this could be a sign of a bigger problem of how Subaru manages its manufacturing operations,” said Janet Lewis, head of Asia transportation research at Macquarie Securities. Subaru's stock price fell as much as 8.5 percent during trading on the Tokyo Stock Exchange when this news came to light. Source: Reuters, NHK World -
Japan's manufacturing industry has been rocked by a number of scandals through the past year. It has ranged from inflating fuel economy figures, fabrication of product data, and recently, improper inspections of Japanese market vehicles by Nissan and Subaru. Now a new scandal has come to light. Subaru has revealed that it is investigating whether or not mileage readings on their vehicles were falsified during final inspection. According to Reuters, the mileage readings are used as an indicator for fuel efficiency. The company is checking to see if this data affected its official mileage readings and whether exported models are involved. "At the moment we are trying to confirm whether data was indeed fabricated, and if so, how this happened and which models are affected," said Subaru spokeswoman Miyuki Yasuda. This revelation stems from a current investigation being done by external investigators into final inspections being done by uncertified workers for JDM vehicles. Some inspectors told the investigators "that mileage data had been altered on some sample vehicle models tested during final checks." “Coming on the heels of the certified inspection issue, this could be a sign of a bigger problem of how Subaru manages its manufacturing operations,” said Janet Lewis, head of Asia transportation research at Macquarie Securities. Subaru's stock price fell as much as 8.5 percent during trading on the Tokyo Stock Exchange when this news came to light. Source: Reuters, NHK World View full article -
If there is one thing we have learned during the Volkswagen diesel emission scandal, it is this: Just when you think you have everything figured out, there is always a surprise waiting around the corner to add a new twist. Bloomberg reports that Bosch allegedly asked Volkswagen for legal protection over damages from the defeat device it helped developed. This allegation comes from a revised lawsuit filed by Volkswagen owners in the U.S. against the two companies. The filing says this request was in a letter sent to Volkswagen June 2, 2008. “Plaintiffs do not have a full record of what unfolded in response to Bosch’s June 2, 2008, letter. However, it is indisputable that Bosch continued to develop and sell to Volkswagen hundreds of thousands of the defeat devices for U.S. vehicles” even after it acknowledged in writing that the use of software as a “defeat device” was illegal in the U.S. according to the filing. “Volkswagen apparently refused to indemnify Bosch, but Bosch nevertheless continued to develop the so-called ‘akustikfunktion’ (the code name used for the defeat device) for Volkswagen for another seven years,” the filing goes on to say. In the original suit filed last month, it alleged Bosch played a key role in conspiring with VW on developing the defeat device and concealing information about it when U.S. regulators started asking questions. At the time, Bosch rejected the claims as “wild and unfounded”. What changed within a month? Lawyers representing the owners uncovered more information. Bosch spokesman Rene Ziegler declined to comment on this story to Bloomberg. Source: Bloomberg View full article
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If there is one thing we have learned during the Volkswagen diesel emission scandal, it is this: Just when you think you have everything figured out, there is always a surprise waiting around the corner to add a new twist. Bloomberg reports that Bosch allegedly asked Volkswagen for legal protection over damages from the defeat device it helped developed. This allegation comes from a revised lawsuit filed by Volkswagen owners in the U.S. against the two companies. The filing says this request was in a letter sent to Volkswagen June 2, 2008. “Plaintiffs do not have a full record of what unfolded in response to Bosch’s June 2, 2008, letter. However, it is indisputable that Bosch continued to develop and sell to Volkswagen hundreds of thousands of the defeat devices for U.S. vehicles” even after it acknowledged in writing that the use of software as a “defeat device” was illegal in the U.S. according to the filing. “Volkswagen apparently refused to indemnify Bosch, but Bosch nevertheless continued to develop the so-called ‘akustikfunktion’ (the code name used for the defeat device) for Volkswagen for another seven years,” the filing goes on to say. In the original suit filed last month, it alleged Bosch played a key role in conspiring with VW on developing the defeat device and concealing information about it when U.S. regulators started asking questions. At the time, Bosch rejected the claims as “wild and unfounded”. What changed within a month? Lawyers representing the owners uncovered more information. Bosch spokesman Rene Ziegler declined to comment on this story to Bloomberg. Source: Bloomberg -
Last week, Mitsubishi admitted that it had manipulated fuel economy figures for 625,000 vehicles sold in Japan. But today, the scandal has only grown as the Japanese automaker revealed that it used fuel economy testing methods that were not compliant with Japanese regulations since 1991. Reuters reports that Mitsubishi was compiling data for fuel economy tests using U.S. standards ( focuses on higher-speed, highway driving) and not Japanese standards (focuses more on city driving). Since Mitsubishi has come clean about the manipulation last week, the company has lost half of its market value (about $3.9 billion). This has also brought back memories of a scandal Mitsubishi Motors was embroiled in fifteen years ago with covering up customer complaints and vehicle defects for more than 20 years. Last week, Japanese authorities raided one of Mitsubishi's R&D offices. The Japanese Government has also asked Mitsubishi to submit a report on the manipulation by tomorrow. Meanwhile, U.S. regulators are pressing Mitsubishi to see if any vehicles sold here were involved in the manipulation. Mitsubishi announced that it has brought in three lawyers to conduct an investigation into the scandal. A report is expected in three months. Source: BBC News, Reuters, Mitsubishi Press Release is on Page 2 Tokyo, April 26, 2016 Regarding the Report to MLIT Concerning Improper Conduct in Fuel Consumption Testing of Vehicles Manufactured by Mitsubishi Motors Corporation The following is a summary of the report submitted by Mitsubishi Motors Corporation (MMC) to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) today, pursuant to instructions received from MLIT on April 20 to investigate improper conduct in fuel consumption testing of vehicles manufactured by MMC. Report Summary 1.Background to the improper conduct of MMC mini-car fuel consumption testing data (1) Four grades of the model year 2014 eK Wagon and Dayz (submitted in February 2013) were produced—a fuel-economy grade, a standard grade, a turbo grade and a 4WD grade. During development of the fuel-economy grade, the fuel consumption target, which had initially been 26.4km/l (in February 2011), was revised upward over a series of internal meetings until finally being set at 29.2km/l (February 2013). (2) Driving resistance data were obtained for that fuel-economy grade using a "high-speed coasting test," which differed from the coasting test required by the applicable laws and regulations in Japan. A relatively low value was selected from among the test results for use as the driving resistance value in order to give the appearance of greater fuel consumption. Data for the remaining three grades were calculated without testing based on the data for the fuel-economy grade. (3) The data submitted for the model year 2014 eK Space and Dayz Roox (submitted in October 2013), the model year 2015 eK Wagon and Dayz (submitted in March 2014), the model year 2015 eK Space and Dayz Roox (submitted in December 2014), and the model year 2016 eK Wagon and Dayz (submitted in June 2015) were all calculated without testing based on the data for the model year 2014 eK Wagon and Dayz to achieve the fuel consumption targets. 2. The following is the timeline leading up to the use of the "high-speed coasting test" differing from the test required by the applicable laws and regulations in Japan. We are currently investigating the reasoning behind each of the decisions outlined below. (1) In 1991, the coasting test was designated as the method for testing driving resistance under the Road Transport Vehicle Act, but MMC began testing vehicles for the Japanese market using a different method, the "high-speed coasting test". (2) In January 1992, a method was developed to reverse-calculate coasting time using driving resistance. (3) In January 2001, a test was run that compared the coasting test to the "high-speed coasting test," and the difference in results was found never to exceed 2.3%. (4) In February 2007, the testing manual was updated to add that "TRIAS (i.e., the coasting test) is to be used for DOM (i.e., vehicles for sale in Japan)." Nevertheless, the "high-speed coasting test" continued to be used thereafter. 3. Future direction of investigations (1) While some progress has been made in investigating the events described in sections 1 and 2 above, we will continue to work to discover the causes of this improper conduct and who is responsible. (2) Sufficient investigation has not been made into MMC vehicles other than the mini-cars described above; we plan to submit a separate report after looking into those models. Establishment of Special Investigation Committee In connection with the certification process for the mini-cars manufactured by Mitsubishi Motors Corporation ("MMC"), MMC hereby notifies that, yesterday, the board of directors decided to establish a special investigation committee (the "Committee") consisting of only external experts. MMC expresses its most sincere apologies to all of our customers, shareholders, and stakeholders for any inconvenience or concern caused by this occasion. 1: Background for the establishment of the Committee As announced, on April 20, 2016, in the press release titled "Improper conduct in fuel consumption testing on products manufactured by Mitsubishi Motors Corporation (MMC)," it has been revealed that, in the certification process for mini-cars manufactured by MMC, with respect to the fuel consumption testing data submitted to the Ministry of Land, Infrastructure, Transport, and Tourism, MMC conducted testing improperly, to present better fuel consumption rates than the actual rates; and that the testing method was also different from the one required by Japanese law (the "Matter"). For the sake of ensuring an objective and thorough investigation into the Matter, MMC has established this Committee in a way such that all members would be external experts independent from MMC. 2: Membership and activities of the Committee i Membership of the Committee The Committee is composed of the members, as follows, who have no conflicts of interest with MMC. Therefore, MMC has recognized no factor that would harm the independence and neutrality of the Committee. Further, MMC is considering appointing experts with technical knowledge to participate in the investigation. Committee Chair: Keiichi WATANABE, Attorney at Law (former Superintending Prosecutor, Tokyo High Prosecutors Office) Committee Member: Yoshiro SAKATA, Attorney at Law Committee Member: Genta YOSHINO, Attorney at Law ii Activities The Committee shall perform the following activities pursuant to MMC's delegation. I Investigation to uncover the facts surrounding the Matter, including review of related documents and data, and interviews with the related people. II Investigation to confirm the existence of other improper conduct similar to the Matter, and uncover the facts, if it does. III Analysis of the cause of the Matter, and a suggestion on measures to prevent recurrence. 3: Schedule moving forward The Committee shall investigate the Matter for about the next three months, and make a report on its results. MMC plans to disclose the report in a timely manner. -
Last week, Mitsubishi admitted that it had manipulated fuel economy figures for 625,000 vehicles sold in Japan. But today, the scandal has only grown as the Japanese automaker revealed that it used fuel economy testing methods that were not compliant with Japanese regulations since 1991. Reuters reports that Mitsubishi was compiling data for fuel economy tests using U.S. standards ( focuses on higher-speed, highway driving) and not Japanese standards (focuses more on city driving). Since Mitsubishi has come clean about the manipulation last week, the company has lost half of its market value (about $3.9 billion). This has also brought back memories of a scandal Mitsubishi Motors was embroiled in fifteen years ago with covering up customer complaints and vehicle defects for more than 20 years. Last week, Japanese authorities raided one of Mitsubishi's R&D offices. The Japanese Government has also asked Mitsubishi to submit a report on the manipulation by tomorrow. Meanwhile, U.S. regulators are pressing Mitsubishi to see if any vehicles sold here were involved in the manipulation. Mitsubishi announced that it has brought in three lawyers to conduct an investigation into the scandal. A report is expected in three months. Source: BBC News, Reuters, Mitsubishi Press Release is on Page 2 Tokyo, April 26, 2016 Regarding the Report to MLIT Concerning Improper Conduct in Fuel Consumption Testing of Vehicles Manufactured by Mitsubishi Motors Corporation The following is a summary of the report submitted by Mitsubishi Motors Corporation (MMC) to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) today, pursuant to instructions received from MLIT on April 20 to investigate improper conduct in fuel consumption testing of vehicles manufactured by MMC. Report Summary 1.Background to the improper conduct of MMC mini-car fuel consumption testing data (1) Four grades of the model year 2014 eK Wagon and Dayz (submitted in February 2013) were produced—a fuel-economy grade, a standard grade, a turbo grade and a 4WD grade. During development of the fuel-economy grade, the fuel consumption target, which had initially been 26.4km/l (in February 2011), was revised upward over a series of internal meetings until finally being set at 29.2km/l (February 2013). (2) Driving resistance data were obtained for that fuel-economy grade using a "high-speed coasting test," which differed from the coasting test required by the applicable laws and regulations in Japan. A relatively low value was selected from among the test results for use as the driving resistance value in order to give the appearance of greater fuel consumption. Data for the remaining three grades were calculated without testing based on the data for the fuel-economy grade. (3) The data submitted for the model year 2014 eK Space and Dayz Roox (submitted in October 2013), the model year 2015 eK Wagon and Dayz (submitted in March 2014), the model year 2015 eK Space and Dayz Roox (submitted in December 2014), and the model year 2016 eK Wagon and Dayz (submitted in June 2015) were all calculated without testing based on the data for the model year 2014 eK Wagon and Dayz to achieve the fuel consumption targets. 2. The following is the timeline leading up to the use of the "high-speed coasting test" differing from the test required by the applicable laws and regulations in Japan. We are currently investigating the reasoning behind each of the decisions outlined below. (1) In 1991, the coasting test was designated as the method for testing driving resistance under the Road Transport Vehicle Act, but MMC began testing vehicles for the Japanese market using a different method, the "high-speed coasting test". (2) In January 1992, a method was developed to reverse-calculate coasting time using driving resistance. (3) In January 2001, a test was run that compared the coasting test to the "high-speed coasting test," and the difference in results was found never to exceed 2.3%. (4) In February 2007, the testing manual was updated to add that "TRIAS (i.e., the coasting test) is to be used for DOM (i.e., vehicles for sale in Japan)." Nevertheless, the "high-speed coasting test" continued to be used thereafter. 3. Future direction of investigations (1) While some progress has been made in investigating the events described in sections 1 and 2 above, we will continue to work to discover the causes of this improper conduct and who is responsible. (2) Sufficient investigation has not been made into MMC vehicles other than the mini-cars described above; we plan to submit a separate report after looking into those models. Establishment of Special Investigation Committee In connection with the certification process for the mini-cars manufactured by Mitsubishi Motors Corporation ("MMC"), MMC hereby notifies that, yesterday, the board of directors decided to establish a special investigation committee (the "Committee") consisting of only external experts. MMC expresses its most sincere apologies to all of our customers, shareholders, and stakeholders for any inconvenience or concern caused by this occasion. 1: Background for the establishment of the Committee As announced, on April 20, 2016, in the press release titled "Improper conduct in fuel consumption testing on products manufactured by Mitsubishi Motors Corporation (MMC)," it has been revealed that, in the certification process for mini-cars manufactured by MMC, with respect to the fuel consumption testing data submitted to the Ministry of Land, Infrastructure, Transport, and Tourism, MMC conducted testing improperly, to present better fuel consumption rates than the actual rates; and that the testing method was also different from the one required by Japanese law (the "Matter"). For the sake of ensuring an objective and thorough investigation into the Matter, MMC has established this Committee in a way such that all members would be external experts independent from MMC. 2: Membership and activities of the Committee i Membership of the Committee The Committee is composed of the members, as follows, who have no conflicts of interest with MMC. Therefore, MMC has recognized no factor that would harm the independence and neutrality of the Committee. Further, MMC is considering appointing experts with technical knowledge to participate in the investigation. Committee Chair: Keiichi WATANABE, Attorney at Law (former Superintending Prosecutor, Tokyo High Prosecutors Office) Committee Member: Yoshiro SAKATA, Attorney at Law Committee Member: Genta YOSHINO, Attorney at Law ii Activities The Committee shall perform the following activities pursuant to MMC's delegation. I Investigation to uncover the facts surrounding the Matter, including review of related documents and data, and interviews with the related people. II Investigation to confirm the existence of other improper conduct similar to the Matter, and uncover the facts, if it does. III Analysis of the cause of the Matter, and a suggestion on measures to prevent recurrence. 3: Schedule moving forward The Committee shall investigate the Matter for about the next three months, and make a report on its results. MMC plans to disclose the report in a timely manner. View full article
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As we reported yesterday, Volkswagen has decided against revealing the preliminary results of their internal investigation as it would bring “unacceptable risks” to the company. It might have been a good idea as a new wrinkle has appeared in the diesel emission scandal. The New York Times has learned from two sources that a top technology executive prepared a PowerPoint presentation showing the automaker could fool the EPA's emission testing. The presentation was only a few pages long and explained the process of how the EPA did it. The presentation also talked about how the test could be fooled by a piece of code in the engine management software, turning on equipment that would reduce the amount of emissions produced. The obvious question is why? Back in 2006, engineers at Volkswagen's r&d complex realized that the emission equipment in their new diesel engine would wear out faster if it was set up for the U.S. emission standards. This presentation provided a possible solution. It is unknown who and how many people saw this presentation. But it brings doubt into Volkswagen's claim that a small group of employees knew about the cheat. The Times also reports that Martin Winterkorn - the former chief executive for Volkswagen - rejected proposals from low-ranking employees. According to sources who attended meetings with the management board, the proposals were tossed out as it would increase the price of Volkswagen vehicles. Unsurprisingly, Volkswagen declined to comment. Source: The New York Times View full article
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As we reported yesterday, Volkswagen has decided against revealing the preliminary results of their internal investigation as it would bring “unacceptable risks” to the company. It might have been a good idea as a new wrinkle has appeared in the diesel emission scandal. The New York Times has learned from two sources that a top technology executive prepared a PowerPoint presentation showing the automaker could fool the EPA's emission testing. The presentation was only a few pages long and explained the process of how the EPA did it. The presentation also talked about how the test could be fooled by a piece of code in the engine management software, turning on equipment that would reduce the amount of emissions produced. The obvious question is why? Back in 2006, engineers at Volkswagen's r&d complex realized that the emission equipment in their new diesel engine would wear out faster if it was set up for the U.S. emission standards. This presentation provided a possible solution. It is unknown who and how many people saw this presentation. But it brings doubt into Volkswagen's claim that a small group of employees knew about the cheat. The Times also reports that Martin Winterkorn - the former chief executive for Volkswagen - rejected proposals from low-ranking employees. According to sources who attended meetings with the management board, the proposals were tossed out as it would increase the price of Volkswagen vehicles. Unsurprisingly, Volkswagen declined to comment. Source: The New York Times -
Mitsubishi Motors has admitted today to manipulating fuel economy tests for 625,000 vehicles sold in Japan. The manipulation involves four kei (small-capacity engines and compact dimensions) cars; Mitsubishi eK Wagon, Mitsubishi eK Space, Nissan Dayz, and Nissan Dayz Roox. Out of the total 625,000 vehicles, the majority of the vehicles are the Nissan models. "The wrongdoing was intentional. It is clear the falsification was done to make the mileage look better. But why they would resort to fraud to do this is still unclear," said Mitsubishi Motors President Tetsuro Aikawa at a press conference. According to BBC News, the manipulation was done by adjusting the tire pressures when testing fuel economy on a rolling road. Nissan uncovered the manipulation as they were unable to replicate the fuel economy figures that Mitsubishi got. "This discovery was made during Nissan’s assessment of data from the current model as part of our development of the next-generation vehicle. We immediately brought the discrepancy to the attention of Mitsubishi, as they are responsible for the development and homologation of the current vehicles. In response to Nissan’s request, Mitsubishi admitted that data had been intentionally manipulated in its fuel economy testing process for certification," Nissan said in a statement. Both Mitsubishi and Nissan have stopped selling the models and are currently figuring out a compensation for affected owners. Mitsubishi has also announced they will be conducting an investigation into overseas models as their internal investigation showed the manipulation was used on other Mitsubishi products. "We will investigate why this happened and prevent a recurrence. We will inform our customers. I feel horrible they were given the wrong numbers," Aikawa said. After the announcement was made, shares in Mitsubishi dropped 15 percent, knocking off about $1.2 billion of the company's market value. This is another black mark for the Japanese company. For more than a decade, Mitsubishi has been trying to regain confidence from the market after it was revealed the company covered up a number of defects involving axles that could cause the wheels to detach. “It’s again bad for the company’s image. It’s not the first time for Mitsubishi to have this kind of issue, and this definitely won’t help them rebuild their reputation,” said Seiji Sugiura, an analyst at Tokai Tokyo Research Center to Automotive News. Source: Automotive News (Subscription Required), Autocar, Associated Press, BBC News, Mitsubishi Statement from Mitsubishi is on Page 2 Improper conduct in fuel consumption testing on products manufactured by Mitsubishi Motors Corporation (MMC) In connection with the certification process for the mini-cars manufactured by MMC, we found that with respect to the fuel consumption testing data submitted to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), MMC conducted testing improperly to present better fuel consumption rates than the actual rates; and that the testing method was also different from the one required by Japanese law. We express deep apologies to all of our customers and stakeholders for this issue. The applicable cars are four mini-car models, two of which are the "eK Wagon" and "eK Space" which have been manufactured by MMC; and the other two are the "Dayz" and "Dayz Roox" which have been manufactured by MMC and supplied to Nissan Motors Corporation (NM) since June 2013. Up until the end of March 2016, MMC has sold 157 thousand units of the eK Wagon and eK Space and supplied 468 thousand units of the Dayz and Dayz Roox to NM. Since MMC developed the applicable cars and was responsible for obtaining the relevant certifications, MMC conducted fuel consumption testing. In the process of the development for the next generation of mini-car products, NM examined the fuel consumption rates of the applicable cars for NM's reference and found deviations in the figures. NM requested MMC to review the running resistance(*) value set by MMC during tests by MMC. In the course of our internal investigation upon this request, MMC learned of the improper conduct that MMC used the running resistance value for testing which provided more advantageous fuel consumption rates than the actual rates. MMC will sincerely respond to our customers who own and use the applicable cars. (*) running resistance: rolling resistance (mainly generated by tires) and air resistance while vehicles are moving We have decided to stop production and sales of the applicable cars. NM also has stopped sales of the applicable cars, and MMC and NM will discuss compensation regarding this issue. During our internal investigation, we have found that the testing method which was different from the one required by Japanese law has been applied to other models manufactured by MMC for the Japanese domestic market. Taking into account the seriousness of these issues, we will also conduct an investigation into products manufactured for overseas markets. In order to conduct an investigation into these issues objectively and thoroughly, we plan to set up a committee consisting of only external experts. We will publish the results of our investigation as soon as it is complete. View full article
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Mitsubishi Motors has admitted today to manipulating fuel economy tests for 625,000 vehicles sold in Japan. The manipulation involves four kei (small-capacity engines and compact dimensions) cars; Mitsubishi eK Wagon, Mitsubishi eK Space, Nissan Dayz, and Nissan Dayz Roox. Out of the total 625,000 vehicles, the majority of the vehicles are the Nissan models. "The wrongdoing was intentional. It is clear the falsification was done to make the mileage look better. But why they would resort to fraud to do this is still unclear," said Mitsubishi Motors President Tetsuro Aikawa at a press conference. According to BBC News, the manipulation was done by adjusting the tire pressures when testing fuel economy on a rolling road. Nissan uncovered the manipulation as they were unable to replicate the fuel economy figures that Mitsubishi got. "This discovery was made during Nissan’s assessment of data from the current model as part of our development of the next-generation vehicle. We immediately brought the discrepancy to the attention of Mitsubishi, as they are responsible for the development and homologation of the current vehicles. In response to Nissan’s request, Mitsubishi admitted that data had been intentionally manipulated in its fuel economy testing process for certification," Nissan said in a statement. Both Mitsubishi and Nissan have stopped selling the models and are currently figuring out a compensation for affected owners. Mitsubishi has also announced they will be conducting an investigation into overseas models as their internal investigation showed the manipulation was used on other Mitsubishi products. "We will investigate why this happened and prevent a recurrence. We will inform our customers. I feel horrible they were given the wrong numbers," Aikawa said. After the announcement was made, shares in Mitsubishi dropped 15 percent, knocking off about $1.2 billion of the company's market value. This is another black mark for the Japanese company. For more than a decade, Mitsubishi has been trying to regain confidence from the market after it was revealed the company covered up a number of defects involving axles that could cause the wheels to detach. “It’s again bad for the company’s image. It’s not the first time for Mitsubishi to have this kind of issue, and this definitely won’t help them rebuild their reputation,” said Seiji Sugiura, an analyst at Tokai Tokyo Research Center to Automotive News. Source: Automotive News (Subscription Required), Autocar, Associated Press, BBC News, Mitsubishi Statement from Mitsubishi is on Page 2 Improper conduct in fuel consumption testing on products manufactured by Mitsubishi Motors Corporation (MMC) In connection with the certification process for the mini-cars manufactured by MMC, we found that with respect to the fuel consumption testing data submitted to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), MMC conducted testing improperly to present better fuel consumption rates than the actual rates; and that the testing method was also different from the one required by Japanese law. We express deep apologies to all of our customers and stakeholders for this issue. The applicable cars are four mini-car models, two of which are the "eK Wagon" and "eK Space" which have been manufactured by MMC; and the other two are the "Dayz" and "Dayz Roox" which have been manufactured by MMC and supplied to Nissan Motors Corporation (NM) since June 2013. Up until the end of March 2016, MMC has sold 157 thousand units of the eK Wagon and eK Space and supplied 468 thousand units of the Dayz and Dayz Roox to NM. Since MMC developed the applicable cars and was responsible for obtaining the relevant certifications, MMC conducted fuel consumption testing. In the process of the development for the next generation of mini-car products, NM examined the fuel consumption rates of the applicable cars for NM's reference and found deviations in the figures. NM requested MMC to review the running resistance(*) value set by MMC during tests by MMC. In the course of our internal investigation upon this request, MMC learned of the improper conduct that MMC used the running resistance value for testing which provided more advantageous fuel consumption rates than the actual rates. MMC will sincerely respond to our customers who own and use the applicable cars. (*) running resistance: rolling resistance (mainly generated by tires) and air resistance while vehicles are moving We have decided to stop production and sales of the applicable cars. NM also has stopped sales of the applicable cars, and MMC and NM will discuss compensation regarding this issue. During our internal investigation, we have found that the testing method which was different from the one required by Japanese law has been applied to other models manufactured by MMC for the Japanese domestic market. Taking into account the seriousness of these issues, we will also conduct an investigation into products manufactured for overseas markets. In order to conduct an investigation into these issues objectively and thoroughly, we plan to set up a committee consisting of only external experts. We will publish the results of our investigation as soon as it is complete. -
When Volkswagen admitted that it used illegal software in their diesel vehicles to cheat emission tests, questions arose as to whether or not any other automakers did something similar. The German Federal Motor Transport Authority (KPA) decided to investigate this and put 60 vehicles from various manufacturers, including Volkswagen, to the test. Their results revealed that Volkswagen was the only one automaker to cheat. These results will be published in a report later this month, but German business paper Handelsblatt learned about the investigation and results from various sources and spilled the beans on it. The KPA investigation started a few days after Volkswagen admitted to cheating emission tests. The authority brought in 60 different vehicles to conduct extensive emission testing in the lab and on the road. The testing was done in secrecy to prevent possible tampering from OEMs. The results of the investigation concluded that Volkswagen was the only automaker to cheat emission tests in Germany. KPA's investigation also revealed there were “strange irregularities” in terms of emissions with other OEM's vehicles. But a source says the emission levels were in the legal limit. Handelsblatt says the results of each vehicle involved in the testing have been sent to their respective automakers. Source: Handelsblatt View full article
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When Volkswagen admitted that it used illegal software in their diesel vehicles to cheat emission tests, questions arose as to whether or not any other automakers did something similar. The German Federal Motor Transport Authority (KPA) decided to investigate this and put 60 vehicles from various manufacturers, including Volkswagen, to the test. Their results revealed that Volkswagen was the only one automaker to cheat. These results will be published in a report later this month, but German business paper Handelsblatt learned about the investigation and results from various sources and spilled the beans on it. The KPA investigation started a few days after Volkswagen admitted to cheating emission tests. The authority brought in 60 different vehicles to conduct extensive emission testing in the lab and on the road. The testing was done in secrecy to prevent possible tampering from OEMs. The results of the investigation concluded that Volkswagen was the only automaker to cheat emission tests in Germany. KPA's investigation also revealed there were “strange irregularities” in terms of emissions with other OEM's vehicles. But a source says the emission levels were in the legal limit. Handelsblatt says the results of each vehicle involved in the testing have been sent to their respective automakers. Source: Handelsblatt -
While much of the focus of the investigations into Volkswagen diesel emission scandal has been focused on the German automaker, attention is now turning to one of their key suppliers. Reuters has learned from sources that the U.S. Department of Justice has opened an investigation into what involvement did German auto supplier Bosch GmbH have in the scandal. Bosch built a number of key components that Volkswagen and its subsidiary brands would use on diesel engines. Now the sources are quick to point out that Bosch isn't charged with anything at the moment. A key part Bosch provided Volkswagen and a number of other German automakers is the engine control module (known as EDC17), and basic software. This module regulates how a vehicle cleans burned-up diesel fuel before it is expelled as exhaust. Each automaker has their own version of the module and software. Now Volkswagen modified the software to cheat emission tests and Bosch insisting that it had nothing to do with it or knew anything. But a source tells Car and Driver that the supplier had to know something was going on. “I’ve had many arguments with Bosch, and they certainly own the dataset software and let their customers tune the curves. Before each dataset is released it goes back to Bosch for its own validation. Bosch is involved in all the development we ever do. They insist on being present at all our physical tests and they log all their own data, so someone somewhere at Bosch will have known what was going on. All software routines have to go through the software verification of Bosch, and they have hundreds of milestones of verification, that’s the structure. The car company is never entitled by Bosch to do something on their own,” said the source. Source: Reuters, Car and Driver View full article
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While much of the focus of the investigations into Volkswagen diesel emission scandal has been focused on the German automaker, attention is now turning to one of their key suppliers. Reuters has learned from sources that the U.S. Department of Justice has opened an investigation into what involvement did German auto supplier Bosch GmbH have in the scandal. Bosch built a number of key components that Volkswagen and its subsidiary brands would use on diesel engines. Now the sources are quick to point out that Bosch isn't charged with anything at the moment. A key part Bosch provided Volkswagen and a number of other German automakers is the engine control module (known as EDC17), and basic software. This module regulates how a vehicle cleans burned-up diesel fuel before it is expelled as exhaust. Each automaker has their own version of the module and software. Now Volkswagen modified the software to cheat emission tests and Bosch insisting that it had nothing to do with it or knew anything. But a source tells Car and Driver that the supplier had to know something was going on. “I’ve had many arguments with Bosch, and they certainly own the dataset software and let their customers tune the curves. Before each dataset is released it goes back to Bosch for its own validation. Bosch is involved in all the development we ever do. They insist on being present at all our physical tests and they log all their own data, so someone somewhere at Bosch will have known what was going on. All software routines have to go through the software verification of Bosch, and they have hundreds of milestones of verification, that’s the structure. The car company is never entitled by Bosch to do something on their own,” said the source. Source: Reuters, Car and Driver
